The Chelsea Inn Motel’s windows are boarded up and the building is under federal control following a dramatic dawn raid Friday morning that involved FBI SWAT officers, Anchorage Police, and the US Marshal. The operation, which targeted a suspected narcotics distribution hub, led to the federal seizure of the property amid an ongoing criminal investigation.
At approximately 6 am on Aug. 22, law enforcement teams executed a high-risk search warrant at the notorious motel, located at 3836 Spenard Road. Flashbangs were used to breach the building, and officers conducted room-by-room searches while detaining occupants in a nearby parking lot. Arrests were made at the scene, although the FBI had not yet released names or details about those taken into custody.
Federal authorities formally posted legal documents on the building’s exterior announcing the seizure of the property. A prominent sign from the US Marshals Service now hangs in one of the lower boarded-up windows, warning: “United States Marshal No Trespassing.”
Also posted on the building is a federal civil lawsuit filed under Case No. 3:25-cv-00177-SLG, titled United States of America v. Chelsea Inn Hotel. The suit seeks court approval for the judicial forfeiture of the hotel, alleging it has been used to facilitate ongoing drug trafficking activity.
Beside it is a copy of the “Notice of Seizure for Judicial Forfeiture” that outlines the federal government’s claim that the hotel was used for the distribution of controlled substances, specifically fentanyl, heroin, and methamphetamine.
The legal action effectively transfers control of the property to the federal government, pending court approval, and prevents public access to the premises, which may pose a significant health hazard due to the accumulated drug residue.
The Chelsea Inn has long been a source of concern for Spenard neighbors and neighboring businesses. The property has been linked to violent incidents, including a fatal stabbing in June and a shooting in 2023.
Dunn & Bradstreet lists James Su as the president of the Anchorage Chelsea Inn Corp.
